Thread: Math Equations.
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Old 07-08-2014, 08:45   #7
spottedmedic111
Quiet Professional
 
Join Date: Jun 2011
Location: Powhatan, VA
Posts: 222
Learned these in first year community college so they might be too advanced...or not. This first set of equations shows how to calculate investment growth.


Compound interest equation

P = C (1 + r/n)nt

Simplified compound interest

P = C (1+r)t

P = future value
C = initial deposit
r = interest rate expressed as a fraction, e.g. 0.04
n = # of times per year interest is compounded
t = number of years invested


This equation is more complicated but is used to calculate loans, such as mortgages.

B = A (1 + r/n)nt - P (1 + r/n)nt - 1 / (1 + r/n) - 1

B = balance after t years
A = amount borrowed
n = number of payments per year
P = amount paid per payment
r = annual percentage rate (APR)
t = number of years
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